📋 Tender Overview
IFC a member of the World Bank Group has issued its first social bond targeting US retail investors interested in achieving positive social impacts in emerging markets including in healthcare education and supporting women entrepreneurs. The inaugural Social Impact Note which pays a 1.70 fixed coupon and features a semi-annual call option after the second year raised 2.9 million for select projects including in countries like Haiti.The proceeds will finance projects that aim to improve access to affordable healthcare and education and socioeconomic advancement. The funds will also be used to support financial institutions that lend to small and medium enterprises as well as women entrepreneurs.The Social Impact Notes are distributed exclusively through Incapitals Legacy platform.As investors are becoming more interested in Environmental Social and Governance ESG issues IFC has expanded its retail Impact Notes Program into the social bond space where proceeds are invested exclusively in projects aimed at achieving positive social outcomes for underserved populations.Earlier this year IFC launched the Social Impact Notes Program showcasing eligible projects to be funded with the proceeds at an event welcoming the broad impact investor community finance and project experts as well as members of the Haitian community.Since issuing its first Social Impact Note on September 16 2019 IFC has used a portion of the proceeds under the Program to disburse funds to Ayiti Leasing in Haiti. The Program supports small and medium size entrepreneurs access to finance while providing IFC investors with opportunities to invest with impact in countries such as Haiti. John Gandolfo IFC Vice President Treasurer said IFCs inaugural Social Impact Note show there is investor appetite for investments in ESG. The issuance has attracted US investors interested in targeting their financial investments to achieve positive social outcomes for vulnerable populations.Sylvain Kakou IFC Resident Representative for Haiti said We believe this inaugural issuance is a positive development with investors participating to support and promote projects with high impact for the people at a local level living in the most challenging environments such as Haiti. Fixed income investors are increasingly seeking opportunities that demonstrate impact said Jodi Waber Managing Director for Incapital. These IFC Social Impact Notes focused on projects in Haiti have captured the interest of individual investors served by our broker-dealer partners. This ongoing capital markets solution for targeting specific development needs will continue to play an important role in funding IFCs work.
